CBZ drags Mliswa to court

TEMBA-MLISWADaniel Nemukuyu Senior Reporter
CBZ Bank Limited has taken Zanu-PF Mashonaland West provincial chairman Cde Temba Mliswa to court over a $2,7 million debt emanating from loans advanced to the politician’s tobacco company to buy the crop in the 2010 and 2011 seasons.
The commercial bank lent Cde Mliswa’s Saltlakes Holdings money to buy tobacco from farmers and the politician bound himself as surety and co-principal debtor.

Saltlakes did not pay back the loans as per agreement, resulting in the bank filing the lawsuit in which Cde Mliswa and Saltlakes are cited as defendants.

In the summons filed at the High Court on October 6 this year, CBZ argued that it released $2 million to Saltlakes to finance the company’s business of buying tobacco from farmers.

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In terms of the agreement signed by the parties on February 17 2011, $1 million was released to Saltlakes, being a carry-over of facilities from the 2010 tobacco buying season.

Another $1 million was released to Saltlakes as working capital to finance the purchase of tobacco in the 2011 season.

According to the agreement, Saltlakes was obliged to pay back the first loan of $1 million by December 31 2011 and the second one expired on December 31 2012.

It was the parties’ agreement that Saltlakes would pay collection costs, bank charges and legal costs on an attorney and client scale in the event that the bank sued for non-payment of the debt.

The parties also agreed that interest would be charged on the figure.

Saltlakes breached the agreement and, despite numerous demands, the company has not repaid the loan.

“The first and second defendants (Saltlakes and Cde Mliswa) breached the terms of the overdraft loan facility agreement by failing to repay the principal amount and interest fully and punctually when they fell due in terms of Clause 9 of agreement,” read the plaintiff’s declaration.

By October 6, interest had accrued and the debt had ballooned to $2 745 092,72.

CBZ wants the money to be paid back with interest calculated at the rate of 28 percent per annum from the date of issuance of summons to the date of final payment.

In a related case, Bak Storage Private Limited is suing Saltlakes for $94 272, being unpaid storage fees for bales of tobacco that were warehoused at Bak Storage’s premises.

In excess of 26 000 tobacco bales were taken to Bak Storage between October 31 2008 and June 2009 as per agreement.

Bak Storage offered some additional services like sewing of the bales, sorting of the bales, handling of the bales and others for a fee.

It is Bak Storage’s argument that Saltlakes did not pay the bill despite demand.

That prompted Bak Storage to file summons claiming the money.

In response, Saltlakes filed a counter-application demanding payment of $2 million, being compensation for tobacco bales damaged while in storage.

The case is yet to be heard at the High Court.

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  • Takaona Crispen

    Kudii kwacho, hapana nyaya apa. CBZ should have carried a due diligence exercise before loaning the money. Collateral to insure and protect their interests in case of default. As for Bak, why did they not auction the tobacco when the client had not paid them by the agreed dates. Musatinyaudza.

  • Manyika

    Temba Mliswa is also indebted to the RBZ to the tune of several millions of US$. The curious thing is such issues are raised when one has offended political heavyweights, leaving me to wonder how many bigwigs are not servicing their obligations. The coincidence of this court case and Temba’s political troubles may suggest a sinister hand behind all this.

  • tichatonga

    zvakuzobuda now why,l see a hand in all these stories,no longer trust herald,mune agenda

  • Jackson Dube

    If anybody wanted to know about mudslinging please read mudslinging for dummies by ZANU PF

  • gulaz

    counter claim ye 2 million of which ndiyo irikudiwa ne CBZ.this foolish politician is crazy.hanzi “damaged bales” mu storage.kkkkkkkkkkkkk.how did he came to this figure?

  • LANDELA

    Billy has got to repay the US$165 million first before Temba can settle the various finanial issues surrounding him.

  • Mudzidzisi Ticha Benard

    cbz are mad they just advance loans to people who have no track record in business. Vakapfuma nezvekuba nepolitics ava

  • Truth seeker

    Get rid of this coon while you can, I sugest before december

  • Tsvigiri

    I have heard Mliswa being dragged to court many times and im still to hear of him luzing a case………..

  • African

    If pressers could be businesses

  • Marz

    This is an example of Zanu greed yet they always claim to put peoples interest first. A few lucky Zanu youth could access mi-sly $1000 loans whereas well connected seniors accessed millions which they cant even pay back, Even those who got farm machinery still produced zero, Wherever there is greed there can never be success. You can be given 100 million loan but with greed and a zero brain you will still amount to nothing . 1 million x 0 = 0 , that is why zanu will never produce results even with diamonds , platinum , all the those resources, zero multiplied by zero is zero